eREITs, as Fundrise calls them, and eFunds are part of the real estate crowdfunding platform.

The platform gives Fundrise account holders an opportunity to create supplemental income through land investments, new construction projects and housing developments. These real estate projects are for people who are interested in buying houses.

The platform gives Fundrise account holders an opportunity to create supplemental income

Fundrise Portfolio Options

Fundrise offers four investment portfolio options:

Starter

Supplemental Income

Balanced Investing

Long-Term Growth

Real estate assets and properties available are combined in a mixture of Fundrise’s eREIT and eFunds. Fundrise determines how they are combined in each portfolio. (Their Supplemental Income option is one of the best passive income ideas).

Click to enlarge and view Fundrise portfolio options.

This method of crowdfunded investing presents both high risks and lucrative opportunities for real estate investors. In 2017, investors saw an average return of nearly 12%.

Why Use Fundrise?

Long-term investing

Properties have liquid value

Diverse portfolio: no stock market connection

Fundrise searches markets for investors

Fundrise isn’t for everyone. Since investments are not traded on the stock market, it means they have liquid value. Therefore, investors partnering with Fundrise need to plan to hold a property for at least five years. This type of investing is what makes Fundrise attractive to certain investors.

If you are looking for diversification without the pull of the stock market or public trading, then Fundrise provides this option.

Also, if you are looking for diversification without the pull of the stock market or public trading, then Fundrise provides this option. Fundrise’s portfolio is independent of stock market portfolio or the middleman. Whether you are launching a starter portfolio or looking for more advanced investments, you have far more flexibility.

Fundrise know real estate investing is a risk, so they offer a 90-day money-back guarantee.

Additionally, Fundrise is also ideal if you are looking for a company that can choose or manage your properties for you. Fundrise eREITS include properties that they have identified as good investments. They find residential and commercial real estate, perform the underwriting, and then choose which properties fit into your portfolio.

Fundrise Review: Pros

There are several key characteristics of Fundrise investments that make it a better option than the competition including:’

Low-cost, low minimum investment

90-day money-back guarantee

User-friendly platform for any device

Easy signup

If you don’t have a lot of cash to shell out upfront for real estate deals, then you can still get in on the good deals with Fundrise. The average first-time investment for entry-level users is $500. A low investment may be what you need to start your portfolio.

According to the Fundrise website (Fundrise.com), the company will purchase your original investment for the original price if you are unhappy with the service. This allows you to decide if Fundrise is for you.

Average investors will appreciate the easy-to-use platform. Signup takes less than 15 minutes after you read the investor disclosures. You simply provide your personal information including your social security number and decide how you want to transfer money to your account. Once you setup your account it may take three to five business days to fund your investment.

Fundrise Review: Cons

With all the benefits that come with using Fundrise, there are some things you need to be aware of such as:

Fundrise does not make their fee information readily accessible

Fundrise can bury you in lengthy digital documents that you still need to read

The Fundrise online platform does not tell the whole story

As seen, the three statements above can be summed up in one word: transparency. When it comes to fees, regulations, any offering circular, or other vital data, Fundrise does not make it easy for you to find this information. They are not alone in this regard. This is standard in the online investment industry.

Also, since you do not have a broker or a middleman to search and decipher this information, you will have to do it yourself. In addition, you may miss hidden management and advisory fees or an annual fee if you don’t do your homework (even the low fees). Furthermore, do not depend on the online investment platform to provide you with the information you need.

Fundrise Review: Bottom Line

If you have some cash to spare and want to get started in real estate investing, Fundrise may be a great starting point.

If you invest, however, make sure you are in it for the long haul. Fundrise works best with long-term investments.

As with any investment company, make sure you what you are getting into. In short, read all documents carefully and understand all fees associated with Fundrise’s services.